New Delhi: The Delhi High Court has raised significant legal questions about the procedural validity of the Industrial Relations Code, 2020, which the Central Government recently brought into force.
In a hearing on Thursday, December 11, 2025, a Division Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela suggested that the government may have enacted the new labour code without properly repealing the earlier statutes that it is supposed to replace.
The court’s observations have highlighted a potential legal and administrative oversight in the operationalisation of one of India’s most critical labour law reform measures.
Background of Industrial Relations Code
In 2020, the Indian Parliament embarked on a major labour reform initiative by consolidating three central labour statutes into a single legislative framework known as the Industrial Relations Code, 2020 (IRC 2020).
The objective of the IRC 2020 was to simplify and modernise an outdated legal architecture that governed industrial relations — including trade union rights, employment conditions, dispute resolution systems, and standing order requirements — under laws that had been in place for nearly a century.
Under the code, the following central statutes were intended to be subsumed and repealed:
- Trade Unions Act, 1926
- Industrial Employment (Standing Orders) Act, 1946
- Industrial Disputes Act, 1947
The IRC was passed by both Houses of Parliament in September 2020 and received Presidential assent, but its substantive provisions were notified into force only on 21 November 2025.
What the Court Noted
During the December hearing, the court drew attention to the fact that while the notification bringing the Industrial Relations Code into force was issued on 21 November 2025, no separate repealing notification was issued explicitly stating that the earlier labour laws had been repealed.
Specifically, the Bench observed that there was no gazette notification declaring the repeal — either partial or full — of the:
- Trade Unions Act, 1926
- Industrial Employment (Standing Orders) Act, 1946
- Industrial Disputes Act, 1947
The court underscored that “there has to be a repealing notification” that not only declares the commencement of the new code but also expressly states that the older laws are repealed.
As of the court’s observation, such a repeal had not been notified, raising questions on whether the statutes are still technically in force.
Government’s Position
In response, the government informed the court that it had issued a separate notification dated 8 December 2025 — under the Industrial Relations Code (Removal of Difficulties) Order, 2025 — to ensure that existing labour courts and industrial tribunals established under the Industrial Disputes Act would continue to handle both pending and new cases until the new tribunals under the IRC are constituted.
This interim notification was intended to avoid a legal vacuum and ensure continuity in adjudication while the statutory infrastructure for new industrial tribunals under the IRC is set up.
Legal and Administrative Implications of Industrial Relations Code
The court’s scrutiny touches upon core principles of legislative procedure and statutory interpretation:
1. Repeal and Commencement
Under Indian legislative practice, when a new law is enacted to replace existing statutes, explicit repeal notifications are required. Without such notifications, the older laws may technically continue to operate alongside the new statute, creating legal ambiguity.
2. Transitional Justice and Pending Cases
The IRC’s Section 51 provides for the automatic transfer of all pending industrial dispute cases from authorities under the earlier Acts to the newly constituted Industrial Tribunals. However, tribunals under the IRC have yet to be established. The government’s interim order seeks to bridge this transition and maintain access to justice.
3. Administrative Readiness
Stakeholders, including labour lawyers, have emphasised that operationalising the IRC without framed rules and constituted tribunals may paralyse adjudicatory systems because the statutory bodies envisaged under the code are not yet functional.
Next Hearing and Outlook
The Delhi High Court has scheduled further hearings on 12 January 2026, where arguments on the government’s approach and the necessity of a distinct repeal notification are expected to be discussed in detail.
The case also sets the stage for possible Supreme Court intervention or legislative clarification if procedural defects are found to undermine the legal status of labour adjudication structures or adversely affect litigants.
